Advertising investment worldwide was extremely affected by the pandemic. And there is an explanation for this. Normally advertising investment usually tracks the financial performance of businesses and the change in GDP. However, companies were overly pessimistic in their analyses and led to disproportionate cuts in marketing spending in the early months of the pandemic.
As a result, many brands readjusted their plans: campaigns that were “in the oven” had to take a break, and those that were already planned took on a new speed.
While advertising via Google, Amazon, Facebook, and Instagram showed substantial growth, advertising through television, newspapers, and magazines suffered a sharp decline. With the worsening pandemic in Mozambique, the outlook is especially concerning for print media because of the risk of contamination it poses. On the other hand, with confinement and home office work, a more favorable scenario for TV was expected, compared to what we are seeing.
The social distancing measures brought about by the coronavirus pandemic gave a big boost to the digital market. E-commerces sites and streaming services recorded peaks in access and sales never seen before. Home internet consumption has also grown.
As always, crises are also opportunities. The pandemic will not last forever:
Renegotiate Advertising Contracts
If a billboard on the Eduardo Mondlane Avenue (in Maputo) had a reach of 200,000 people per day, today the numbers will be a bit more modest.
With the postponement of advertising campaigns and major events, national and international such as Euro, Olympic Games, Mozefos, FACIM and others, whose advertising spaces have high commercial value, the media lost another source of revenue. This makes the environment more favorable for contract renegotiation.
Despite the concentration of audience in a smaller number of programs, media and channels, it is possible to expand and/or maintain the company’s presence in the market.
Reinforce the Presence in Social Networks
The costs per impression (publipost) have fallen, and because of this it is now possible to do the same, with almost half the budget. The online environment is very fertile for campaigns that encourage quick purchases. Therefore, advertisers must take advantage of these opportunities, which means prioritizing digital advertising.
Pandemic has changed the advertising industry and companies that today live by improvisation will have to find new ways to build their brands.
Readjust Media Investment
Advertisers are tending to diversify their advertising budgets more and more. As consumer behavior changes, in response, advertising investment must be readjusted.
It makes little sense for companies to continue spending for a medium that does not have the same audience. Stadiums, movie theaters, and events are empty. The change in people’s media and consumption habits will force us to rethink the best way to advertise.